HSBC Joins List Of Banks Warning It Will Probably Get Fined For Improper Foreclosure Practices

HSBC is the latest in a string of banks who warned investors via their SEC filing that they expect to get fined after getting a letter from regulators chastising their improper foreclosure practices. On Friday, Wells Fargo, Ally Financial (formerly GMAC) and SunTrust banks made similar announcements.

The letters took them to task for three things:

“Deficiencies” in how they processed mortgage and foreclosure documents

Poorly monitoring issue that might arise in that paper trail

Not setting aside enough money to deal with the eviction process

Even after the fines, the door was left open for further action against the banks, so it’s possible we might see more of this down the pike.